No Real Catalyst
Despite some mayor bearishness coming through the media, blogosphere and market moving downwards, I see no strong enough catalyst to move markets significantly lower. As I’m writing this post European equities are trading flat after opening lower and US equity index futures marginally higher. Asia closed mostly negative. Looks like no action day today.
From the news today most intriguing some PR action from the FED Governor Kevin Warsh. WSJ link: The Fed’s Job Is Only Half Over; Bloomberg follow up link: Fed May Need Aggression in Reversing Actions, Warsh Says in WSJ. The most interesting for me is part in which reversing the FED measures is mentioned. It looks to me that removing the programs at that speed is, frankly speaking, impossible.
Blast from the past week. Two interesting stories. First one from the WSJ via. Big Picture: A Coming Flood of Bank Owned Homes. and second one from Moody’s via Zero Hedgde: Moody’s Credit Card Index Hit Record 11.49% Record Charge-Off Rate In August. Yeah, I understand some numbers are signing some signs of stabilization, even improvements, but with that kind of news It’s hard for me to think we could get away so easily from this mess.
Short look at BDI for the end of the post . Steady slide for 14 days. Off course man s got to take in count the inflow of newly build ships to the market and dry bulk demand/supply fundamentals, large order book, but in the first half BDI showed as an strength indication of China stimulus, now maybe it indicates opposite. Just to mention, the break even for the shipowners is approximately at 2500.
Chart 1. Baltic Dry Index
